Adobe Profit Rises Sharply
September 17 2015 - 5:20PM
Dow Jones News
Adobe Systems Inc.'s third-quarter profit rose sharply on a
double-digit revenue increase, driven by digital cloud revenue
business.
Digital media annualized recurring revenue, a key metric Adobe
uses to calculate how much it makes from subscriptions, rose to
$2.65 billion from $2.35 billion in the previous quarter.
The San Jose, Calif., company had projected $2.93 billion in
recurring revenue for the year, adjusting for currency
fluctuations.
More than 40% of Adobe's revenue comes from outside the U.S.
Adobe, founded in 1982, hasn't paid a dividend since 2005,
opting instead for share buybacks as a way to pass on some of its
cash to shareholders. In the latest period, it retired about 1.6
million shares.
Over all, for the period ended Aug. 28, Adobe reported a profit
of $174.5 million, or 34 cents a share, up from $44.7 million, or
nine cents a share, a year earlier. Excluding stock-based
compensation and other items, profit rose to 54 cents from 28
cents.
Revenue rose 21% to $1.22 billion.
Adobe had projected a profit of 45 cents to 51 cents a share on
$1.18 billion to $1.23 billion in revenue.
Gross margin remained largely flat at 84.3%.
Deferred revenue, meanwhile, rose nearly 15% to $1.26
billion.
Shares closed Thursday at $80.31, up 10% for the year.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 17, 2015 17:05 ET (21:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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